The American College Center for Retirement Income’s RICP® Volatility Flash Survey Report asked over 170 professionals holding the Retirement Income Certified Professional® (RICP®) designation to share how their clients reacted to volatility spikes and how they helped their clients safeguard their retirement plans and maintain peace of mind despite market upheaval. 

Client Impact 

Most respondents reported that clients needed additional reassurance in the wake of volatility but were able to stay on track. 

More Calls, More Meetings—61.4% of respondents experienced increased contact from retired clients after the market turbulence, highlighting the advisor's role in addressing client concerns during volatile markets. 

Staying Calm—57.3% of respondents reported that their retired clients made no changes to their retirement plans due to market volatility, suggesting that their plans already accounted for such events. 

Some Wealthy Clients Fared Better—42.3% of respondents noted that their high-net-worth clients were less concerned about market volatility than their lower-net-worth clients, while 44.8% reported no difference. 

The Role of Advisors 

When asked how they helped retired clients deal with market volatility, respondents reported a range of strategies (see Figure 1). 

The American College Center for Retirement Income. RICP® Volatility Flash Survey Report. 2015. 

Specifically, advisors chose to: 

• Plan for Volatility—These advisors reported that their plans already account for volatility through cash and guaranteed income positions. 
• Stay the Course—This approach emphasizes proactive communication with clients to provide psychological assurance during periods of market volatility. 
• Reevaluate Risk Tolerance—For these respondents, market volatility required them to re-address their clients’ risk tolerance levels and adjust their plans accordingly. 
• Trade—These professionals saw market volatility as an opportunity for the clients. 

Safeguarding Retirement

The survey results highlighted the important role that advisors can play in protecting clients’ retirement and helping them deal with periods of uncertainty. This role can include: 

• Staying in touch with clients through market volatility to provide reassurance. 
• Building floors of guaranteed income that is not subject to market volatility. 
• Using a cash reserve that can be tapped in a down market. 
• Creating multiple portfolios for different time periods in retirement and making the longest-term portfolio the most aggressive.

For more insights, download a summary of the survey now.

The Defined Contribution Rollover Survey conducted by The American College New York Life Center for Retirement Income seeks to answer these questions through a survey of recent retirees.The study focused on important decisions surrounding retirement such as the decision to rollover or retain a 401(k) and when to collect Social Security. 

To qualify for participation in the study, respondents had to be at least 60 years old, retired from full-time employment within the past three years, and have had at least $75,000 invested in their former employer’s 401(k) or 403(b) plan at the time of their retirement. 

View the reports to read about the study's key findings, including: 

• Whether or not rollover decisions are viewed by consumers as important retirement planning decisions
• What are the important factors when making a rollover decision ?
• Whether or not advisors are seen as adding value to rollover decisions

Summary Report

Research Report

The study consisted of two related research phases. The first was an online survey that asked respondents to answer a series of rank-choice questions related to ethical concerns in retirement income planning. The second phase consisted of soliciting volunteers at the end of the survey to gather more specific clarification on a number of ethical questions through telephone-based interviews.

Maintaining Ethical Behavior in a Challenging Environment 

Retirement income planning is extraordinarily challenging. Retirement income professionals are expected to manage a variety of client risks, legal changes, and ethical issues when developing a comprehensive plan. 

Advisors are well aware of these challenges and worry that the industry as a whole lacks the proper training and education required to effectively serve clients. 

The purpose of this research was to specifically identify financial service professionals’ primary ethical concerns in retirement income planning, gauge how financial service professionals view the industry’s current ethical challenges, and understand how ethical practices can be improved in retirement income planning. 

Key Takeaways: Advisors' Main Concerns 

The study found that advisors share key concerns when it comes to ethics in the industry. 

• Respondents are troubled that in the increasingly complicated field of retirement income planning practitioners lack the comprehensive knowledge to offer expert advice. 
• Advisors are concerned that clients are being put at risk because of a lack of education on the client side. 
• Retirement planners are very concerned that clients cannot understand their plans and that advisors are not adequately educated or trained to meet the clients’ complex retirement income needs. 

View the report to see the top ethical concerns of retirement income professionals and more insights.

Who Was Surveyed? 

The American College of Financial Services delivered an online survey from January 4-6, 2017, to client-facing financial advisors holding the Retirement Income Certified Professional® (RICP®) designation. A total of 419 RICP® advisors responded to the anonymous survey over the three days. 

Key Takeaways Include: 

• 60% of advisors expected 2017 markets to be more volatile. Uncertainty makes it a good time to review retirement income plans to make sure they are equipped for market changes. 
• 77% of advisors stated that changes to retirement income plans due to increased market volatility would depend on individual client situations. Retirement income plans need to adjust to changing client risk tolerances and must be tailored to individual situations as there is no one size fits all retirement income plan. 
• 68% of advisors reported that some of their clients were expressing increased concerns regarding their retirement security following the election. While a new administration brings uncertainty and increased public policy risk, it is a good time for clients and advisors to sit down and review the existing retirement plan. 
• 40% of advisors planned to buy income annuities for retired clients. All time market highs are a good time to lock in gains to generate additional lifetime income. 

For all the findings, access the report now.

The American College New York Life Center for Retirement Income asked Greenwald & Associates to conduct the 2017 RICP® Retirement Income Literacy Survey, a comprehensive study testing retirement income literacy. The goal was to determine whether retirees and pre-retirees have the knowledge they need to successfully plan for a financially secure retirement. This survey is a follow-up of the 2014 RICP® Retirement Income Literacy Survey, which had a similar methodology and questionnaire. 

The result was one of the most comprehensive surveys of retirement income literacy ever completed. 

Online interviews were conducted with 1,244 Americans ages 60-75 with at least $100,000 in household assets (not including their primary residence). The survey included 38 quiz questions in 12 relevant topic areas: retirement planning, ability to maintain lifestyle, income generation, annuity product knowledge, Social Security, life expectancy, death of a spouse, taxes, inflation, housing, medical insurance, and long-term care. 

Just 26% of those surveyed passed the quiz.

Read the full results here.

The 2017 RICP® Retirement Income Literacy Report was designed to assess retirement literacy among individuals who are nearing or already in retirement. Because respondents were identified by demographic status, including gender, the data was able to identify substantial differences in literacy rates between respondents with and without college degrees, wealthier and less wealthy respondents, and men and women. 

Unfortunately, women did significantly worse on the retirement income planning literacy quiz than men. They showed lower levels of self-perceived knowledge. They were more likely to identify themselves as cautious or risk averse than male respondents. And women respondents were less likely to do internet searches to look up financial information. 

Because women were more likely to show low levels of literacy around key decisions, this could be negatively impacting their retirement security. 

Read the full report now.

The American College of Financial Services is the nation’s largest nonprofit educational institution devoted to financial services. Holding the highest level of academic accreditation, The College has educated one in five financial advisors across the United States and offers two master’s degrees in management and financial services. 

As the novel coronavirus continues to spread worldwide causing uncertainty about what lies ahead, concerns of a looming economic slowdown have skyrocketed as the stock market weathered through its worst week since The Great Recession. To provide a better understanding of the issue, The College surveyed a panel of 245 financial advisors with the Retirement Income Certified Professional® (RICP®) designation from Friday, February 28 to Monday, March 2 to determine how their clients reacted to the significant roller coaster in the stock market last week and found that the majority of clients show heightened concern. 

2020 RICP® Market Volatility Flash Survey Findings 

Some of the key takeaways from the survey are as follows: 

• More than 65 percent of advisors indicated their clients have been more likely to reach out to them due to recent market volatility. 
• Of those clients, 68 percent are either in retirement or one to five years away from retirement age. 
• Half of clients indicated that they are more concerned about retirement security this year than last year. 
• Even though clients are showing more concern, over 60 percent of advisors reported that none of their clients had made changes to their plan as a result of recent market performance.​ 

According to the RICP® advisors surveyed, the strategies they employ to help clients build a plan that safeguards against market turmoil include: 

• Staying in touch with clients through market volatility. 
• Advising them to build a floor of guaranteed income not subject to market volatility. 
• Using a cash reserve which can be tapped in a down market. 
• Creating multiple portfolios for different time periods in retirement and making the longest-term portfolio more aggressive​. 

Retirement Income Thought Leaders Weigh In 

The American College of Financial Services' esteemed retirement income thought leaders also discussed how clients react during market volatility and the importance of building a secure, long-term plan that protects against financial turmoil. 

Wade Pfau, PhD, CFA, RICP®, Co-Director of the Center for Retirement Income and Program Director for the RICP® designation at The American College of Financial Services: 

“Our findings show that our RICP®s are wisely counseling their clients with the lessons that we’ve learned from history, despite the stress that market volatility causes, investors are generally better off to stay the course with their strategy, as the downturn is reducing the stock allocation without any further need to sell.” 

Dave Littell, JD, ChFC®, Co-Creator of the RICP® curriculum and Professor Emeritus at The American College of Financial Services: 

“A late-cycle economy always brings an uptick in investor anxiety, but the recent market volatility from the coronavirus is really packing a one-two punch on retirees and near-retirees’ sense of security. However, the fact that a majority are leaving their plans alone to weather this storm shows that client confidence in our RICP®s and the plans that they’ve built are strong.” 

Steve Parrish, JD, RICP®, CLU®, ChFC®, RHU®, AEP®, Co-Director of the Center of Retirement Income at The American College of Financial Services: 

"This is not yet a black swan event – we all knew that a virus could disrupt the markets, and even cause a panic. Our findings reiterate that unless you enjoy market speculation as a sport, there’s really no strategy to better insulate your retirement capital exposure other than to ride the market out – especially if you’re not yet retired.” 

The 2020 RICP® Market Volatility Flash Survey underscores that both financial advisors and consumers can benefit from education and the importance of planning when it comes to retirement security.

This survey, which includes an analysis of over 800 women, describes how likely women are to work with a financial advisor, express concerns about their retirement security, and managing their finances. 

The survey found that women tend to be more modest and humble about their financial and investment knowledge and literacy, and that their retirement planning and income literacy trails that of men. Men outscored women on our 38-question quiz, which tested knowledge on retirement planning, medical and long-term care, life insurance, investing, and retirement income planning and strategies. 

Women represent a critical audience for financial advisors and financial services providers. Understanding how their approach to financial and retirement planning differs from men and by age, asset level, and racial or ethnic background is critical to building lasting relationships and developing products, services, and approaches that meet women’s needs.

Read the full report now.

The CAP® program was created to foster greater philanthropic impact throughout our communities by bringing nonprofit gift planners and financial, tax, and legal advisors together in a common, cross-disciplinary curriculum to help better serve clients and donors. Today, over 2,500 CAP® designees are doing just that. 

Our research found that CAP® designees work in various disciplines and represent an expanding number of nonprofit, for-profit, and hybrid organizations. They’re facilitating complex philanthropic gifts through vehicles that didn’t exist when the CAP® program began. They’re also navigating numerous cultural issues and societal needs, in addition to the effects of the global pandemic. 

Through the participation of 486 CAP® designees and students, we now have a greater understanding of the ever-increasing diversity and interests of the CAP® community. For example, respondents credit CAP® with helping them gain credibility, confidence, recognition, and greater knowledge of donor motivations and charitable tools. We also received many responses to our open-ended questions that mentioned the need to update the curriculum with diversity in voices, perspectives, and current practices. Many expressed a desire to continue learning beyond the CAP® program through mentoring and networking programs.

Read the report here.